China As An EV Paradise – Not Just Yet Nov 02nd 2013 This article from Global times explains the issues behind the lack of development in the Chinese EV market. Despite local players such as BYD putting on a good show in terms of developing the E6 and the Qin, there hasn’t yet been a major role out of new energy vehicles across China, the lack of charging infrastructure and confusion over subsidies are likely to be blamed – although subsidies are relatively generous confusion and a lack of cars from mainstream brands could also be reasons. A 260,000RMB BYD is always going to be hard sell against fashionable cars from international manufacturers even if the government is offering to pay for half of it. What kind of middle ground can be achieved? Vehicles such as the Chevrolet Volt and BYD Qin which combine traditional gasoline engines with electric drivetrains will probably give consumers more confidence and overcome any potential range anxiety people might have. International brands haven’t yet launched any plugin hybrids into the Chinese market, Toyota brought its Prius to the FAW-Toyota JV but failed to bring the plugin technology with it, meaning that at the time it was eligible for a 3000RMB efficiency subsidy. - When many of the world’s leading carmakers gaze into the future, they see a market dominated by electric vehicles (EVs). Policymakers and planners around the world have jumped on board the EV revolution and are rolling out measures designed to give their local carmakers a head start in this emerging market. China can’t ignore this trend – it too needs to position its own manufacturers near the front of the race. - There is a consensus within the auto industry that it will take another decade for EVs to enter the mainstream market. With the market still in its infancy, rigid industrial standards and intellectual property barriers have not yet taken root with EVs the same way they have with conventionally powered vehicles. China’s auto industry can wait around for the foreign market to mature and then mimic the success stories which emerge overseas. But by remaining passive, Chinese vehicle makers will continue to lag behind their more assertive Western counterparts. - The current incubation stage offers the best opportunity for Chinese car manufacturers to pull ahead in tomorrow’s global EV market. The industry needs clear strategic vision directed toward the mass production and application of electric cars. This is what the car market of the future will demand. Achieving this lofty aim will not be easy – the competition along the way will be fierce and the investment demands will be heavy, but those that survive the trial-by-fire will be well-placed to lead the next era of the automotive industry. - To jump-start innovation in China, the industry needs new players. The current excitement surrounding EVs didn’t come from Ford, General Motors or any other established carmaker. It came from Tesla Motors, the Silicon Valley-based company co-founded by tech guru Elon Musk. Tesla succeeded in the development of an alternative technology in part because it was not shackled to old assets and paradigms. - In China though, it’s hard to see a dark horse staging a Tesla-style breakthrough. The government’s industrial policies involve supporting key enterprises, setting development goals and establishing industry entry thresholds to guard against excessive competition. With administrative barriers gating off market access, what are the odds that new and novel technologies will get off the ground? - At the same time, the inconvenience and expense of owning an EV in China means that the market needs a reason to consider these vehicles. Various local governments have offered subsidies to EV purchasers, but the industry can’t rely long-term on financial inducements to prop up demand. That being said – I spotted a BYD E6 in Qingdao traffic earlier today, the first time I’ve seen an E6 north of BYD’s home city in Shenzhen so perhaps the EV rollout is not so far behind after all. chinacartimes/2013/11/02/china-ev-paradise/
Posted on: Mon, 11 Nov 2013 01:20:29 +0000
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